SAMSUNG

The Samsung Group (or simply Samsung, stylized in logo as SΛMSUNG) (Korean:)

is a South Korean multinational manufacturing conglomerate headquartered in

Samsung Town, Seoul, South Korea. It comprises numerous affiliated businesses,

most of them united under the Samsung brand, and is the largest South Korean

chaebol (business conglomerate). As of 2020, Samsung has the 8th highest global

brand value. Samsung was founded by Lee Byung-chul in 1938 as a trading company.

Over the next three decades, the group diversified into areas including food

processing, textiles, insurance, securities, and retail. Samsung entered the electronics

industry in the late 1960s and the construction and shipbuilding industries in the mid-

1970s; these areas would drive its subsequent growth. Following Lee's death in 1987,

Samsung was separated into five business groups – Samsung Group, Shinsegae

Group, CJ Group and Hansol Group, and Joongang Group. Notable Samsung

industrial affiliates include Samsung Electronics (the world's largest information

technology company, consumer electronics maker and chipmaker measured by 2017

revenues), Samsung Heavy Industries (the world's 2nd largest shipbuilder measured

by 2010 revenues), and Samsung Engineering and Samsung C&T Corporation

(respectively the world's 13th and 36th largest construction companies). Other notable

subsidiaries include Samsung Life Insurance (the world's 14th largest life insurance

company), Samsung Everland (operator of Everland Resort, the oldest theme park in

South Korea) and Cheil Worldwide (the world's 15th largest advertising agency, as

measured by 2012 revenues).

HISTORY

In 1938, during Japanese-ruled Korea, Lee Byung-chul (1910–1987) of a large

landowning family in the Uiryeong county moved to nearby Daegu city and founded

Mitsuboshi Trading Company (Kabushiki gaisha Mitsuboshi Shōkai)), or Samsung

Sanghoe. Samsung started out as a small trading company with forty employees

located in Su-dong (now Ingyo-dong). It dealt in dried-fish, locally-grown groceries

and noodles. The company prospered and Lee moved its head office to Seoul in 1947.

When the Korean War broke out, he was forced to leave Seoul. He started a sugar

refinery in Busan named Cheil Jedang. In 1954, Lee founded Cheil Mojik and built

the plant in Chimsan-dong, Daegu. It was the largest woollen mill ever in the country.

Samsung diversified into many different areas. Lee sought to establish Samsung as a

leader in a wide range of industries. Samsung moved into lines of business such as

insurance, securities, and retail. In 1947, Cho Hong-jai, the Hyosung group's founder,

jointly invested in a new company called Samsung Mulsan Gongsa, or the Samsung

Trading Corporation, with the Samsung's founder Lee Byung-chull. The trading firm

grew to become the present-day Samsung C&T Corporation. After a few years, Cho

and Lee separated due to differences in management style. Cho wanted a 30 equity

share. Samsung Group was separated into Samsung Group and Hyosung Group,

Hankook Tire and other businesses. In the late 1960s, Samsung Group entered the

electronics industry. It formed several electronics-related divisions, such as Samsung

Electronics Devices, Samsung Electro-Mechanics, Samsung Corning and Samsung

Semiconductor & Telecommunications, and made the facility in Suwon. Its first

product was a black-and-white television set. In 1980, Samsung acquired the Gumi-

based Hanguk Jeonja Tongsin and entered telecommunications hardware. Its early

products were switchboards. The facility was developed into the telephone and fax
manufacturing systems and became the center of Samsung's mobile phone

manufacturing. They have produced over 800 million mobile phones to date. The

company grouped them together under Samsung Electronics in the 1980s. After Lee,

the founder's death in 1987, Samsung Group was separated into five business groups

—Samsung Group, Shinsegae Group, CJ Group, Hansol Group and the JoongAng

Group. Shinsegae (discount store, department store) was originally part of Samsung

Group, separated in the 1990s from the Samsung Group along with CJ Group

(Food/Chemicals/Entertainment/logistics), Hansol Group (Paper/Telecom), and the

JoongAng Group (Media). Today these separated groups are independent and they are

not part of or connected to the Samsung Group. One Hansol Group representative

said, "Only people ignorant of the laws governing the business world could believe

something so absurd", adding, "When Hansol separated from the Samsung Group in

1991, it severed all payment guarantees and share-holding ties with Samsung

affiliates." One Hansol Group source asserted, "Hansol, Shinsegae, and CJ have been

under independent management since their respective separations from the Samsung

Group". One Shinsegae department store executive director said, "Shinsegae has no

payment guarantees associated with the Samsung Group". In the 1980s, Samsung

Electronics began to invest heavily in research and development, investments that

were pivotal in pushing the company to the forefront of the global electronics

industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plant in

New York; in 1985, a plant in Tokyo; in 1987, a facility in England; and another

facility in Austin, Texas, in 1996. As of 2012, Samsung has invested more than

US$13,000,000,000 in the Austin facility, which operates under the name Samsung

Austin Semiconductor. This makes the Austin location the largest foreign investment

in Texas and one of the largest single foreign investments in the United States. In
1987, United States International Trade Commission order that the Samsung Group of

South Korea unlawfully sold computer chips in the United States without licenses

from the chip inventor, Texas Instruments Inc. The order requires Samsung to pay a

penalty to Texas Instruments within the coming weeks. Otherwise, sales of all

dynamic random access memory chips made by Samsung and all products using the

chips would be banned in the United States. The ban includes circuit boards and

equipment called single-in-line packages made by other companies that use D-RAM's

made by Samsung with 64,000 or 256,000 characters of memory. It also covers

computers, facsimile machines and certain telecommunications equipment and

printers bearing either of the Samsung chips. Since 1990, Samsung has increasingly

globalised its activities and electronics; in particular, its mobile phones and

semiconductors have become its most important source of income. It was in this

period that Samsung started to rise as an international corporation in the 1990s.

Samsung's construction branch was awarded contracts to build one of the two

Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in United

Arab Emirates. In 1993, Lee Kun-hee sold off ten of Samsung Group's subsidiaries,

downsized the company, and merged other operations to concentrate on three

industries: electronics, engineering and chemicals. In 1996, the Samsung Group

reacquired the Sungkyunkwan University foundation. Samsung became the world's

largest producer of memory chips in 1992 and is the world's second-largest chipmaker

after Intel (see Worldwide Top 20 Semiconductor Market Share Ranking Year by

Year). In 1995, it created its first liquid-crystal display screen. Ten years later,

Samsung grew to be the world's largest manufacturer of liquid-crystal display panels.

Sony, which had not invested in large-size TFT-LCDs, contacted Samsung to

cooperate, and, in 2006, S-LCD was established as a joint venture between Samsung
and Sony in order to provide a stable supply of LCD panels for both manufacturers. S-

LCD was owned by Samsung (50% plus one share) and Sony (50% minus one share)

and operates its factories and facilities in Tanjung, South Korea. As of 26 December

2011, it was announced that Samsung had acquired the stake of Sony in this joint

venture. Compared to other major Korean companies, Samsung survived the 1997

Asian financial crisis relatively unharmed. However, Samsung Motor was sold to

Renault at a significant loss. As of 2010, Renault Samsung is 80.1 percent owned by

Renault and 19.9 percent owned by Samsung. Additionally, Samsung manufactured a

range of aircraft from the 1980s to the 1990s. The company was founded in 1999 as

Korea Aerospace Industries (KAI), the result of a merger between then three domestic

major aerospace divisions of Samsung Aerospace, Daewoo Heavy Industries and

Hyundai Space and Aircraft Company. However, Samsung still manufactures aircraft

engines and gas turbines. In 2000, Samsung opened a development center in Warsaw,

Poland. Its work began with set-top-box technology before moving into digital TV

and smartphones. The smartphone platform was developed with partners, officially

launched with the original Samsung Solstice line of devices and other derivatives in

2008, which was later developed into Samsung Galaxy line of devices including

Notes, Edge and other products. In 2007, former Samsung chief lawyer Kim Yong

Chul claimed that he was involved in bribing and fabricating evidence on behalf of

the group's chairman, Lee Kun-hee, and the company. Kim said that Samsung lawyers

trained executives to serve as scapegoats in a "fabricated scenario" to protect Lee,

even though those executives were not involved. Kim also told the media that he was

"sidelined" by Samsung after he refused to pay a $3.3 million bribe to the U.S.

Federal District Court judge presiding over a case where two of their executives were

found guilty on charges related to memory chip price-fixing. Kim revealed that the
company had raised a large number of secret funds through bank accounts illegally

opened under the names of up to 1,000 Samsung executives—under his own name,

four accounts were opened to manage 5 billion won. In 2010, Samsung announced a

ten-year growth strategy centered around five businesses. One of these businesses was

to be focused on biopharmaceuticals, to which has committed ₩2,100,000,000,000.

In first quarter of 2012, Samsung Electronics became the world's largest mobile phone

maker by unit sales, overtaking Nokia, which had been the market leader since 1998.

On 24 August 2012, nine American jurors ruled that Samsung Electronics had to pay

Apple $1.05 billion in damages for violating six of its patents on smartphone

technology. The award was still less than the $2.5 billion requested by Apple. The

decision also ruled that Apple did not violate five Samsung patents cited in the case.

Samsung decried the decision saying that the move could harm innovation in the

sector. It also followed a South Korean ruling stating that both companies were guilty

of infringing on each other's intellectual property. In first trading after the ruling,

Samsung shares on the Kospi index fell 7.7%, the largest fall since 24 October 2008,

to 1,177,000 Korean won. Apple then sought to ban the sales of eight Samsung

phones (Galaxy S 4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-Mobile,

Galaxy S2 Epic 4G, Galaxy S Showcase, Droid Charge and Galaxy Prevail) in the

United States which has been denied by the court. As of 2013, the Fair Trade

Commission of Taiwan is investigating Samsung and its local Taiwanese advertising

agency for false advertising. The case was commenced after the commission received

complaints stating that the agency hired students to attack competitors of Samsung

Electronics in online forums. Samsung Taiwan made an announcement on its

Facebook page in which it stated that it had not interfered with any evaluation report

and had stopped online marketing campaigns that constituted posting or responding to
content in online forums. In 2015, Samsung has been granted more U.S. patents than

any other company – including IBM, Google, Sony, Microsoft and Apple. The

company received 7,679 utility patents through 11 December. The Galaxy Note 7

smartphone went on sale on 19 August 2016. However, in early September 2016,

Samsung suspended sales of the phone and announced an informal recall. This

occurred after some units of the phones had batteries with a defect that caused them to

produce excessive heat, leading to fires and explosions. Samsung replaced the

recalled units of the phones with a new version; however, it was later discovered that

the new version of the Galaxy Note 7 also had the battery defect. Samsung recalled all

Galaxy Note 7 smartphones worldwide on 10 October 2016, and permanently ended

production of the phone the following day. In 2018, Samsung launched the world's

largest mobile manufacturing facility in Noida, India,

AFFILIATES

Samsung Electronics is a multinational electronics and information technology

company headquartered in Suwon and the flagship company of the Samsung Group.

Its products include air conditioners, computers, digital television sets, active-matrix

organic light-emitting diodes (AMOLEDs), mobile phones, display monitors,

computer printers, refrigerators, semiconductors and telecommunications networking

equipment. It was the world's largest mobile phone maker by unit sales in the first

quarter of 2012, with a global market share of 25.4%.It was also the world's second-

largest semiconductor maker by 2011 revenues (after Intel). Steco is the joint venture

established between Samsung Electronics and Japan's Toray Industries in 1995.

Toshiba Samsung Storage Technology Corporation (TSST) is a joint venture between

Samsung Electronics and Toshiba of Japan which specialises in optical disc drive
manufacturing. TSST was formed in 2004, and Toshiba owns 51 percent of its stock,

while Samsung owns the remaining 49 percent. Samsung Electronics is listed on the

Korea Exchange stock market (number 005930). Samsung Biologics is a

biopharmaceutical division of Samsung, founded in 2011. It has contract development

and manufacturing (CDMO) services including drug substance and product

manufacturing and bioanalytical testing services. The company is headquartered in

Incheon, South Korea and its existing three plants comprises the largest biologic

contract manufacturing complex. It expanded its contract development service lab to

San Francisco, U.S. Samsung Biologics is listed on the Korean Exchange stock

market (number 207940). Samsung Bioepis is a biosimilar medicine producer and

joint venture between Samsung Biologics (50 percent plus one share) and the U.S.-

based Biogen Idec (50 percent). In 2014, Biogen Idec agreed to commercialize future

anti-TNF biosimilar products in Europe through Samsung Bioepis. Samsung

Engineering is a multinational construction company headquartered in Seoul. It was

founded in January 1969. Its principal activity is the construction of oil refining

plants; upstream oil and gas facilities; petrochemical plants and gas plants; steel

making plants; power plants; water treatment facilities; and other infrastructure. It

achieved total revenues of 9,298.2 billion won (US$8.06 billion) in 2011. Samsung

Engineering is listed on the Korea Exchange stock market (number 02803450).

Samsung Fire & Marine Insurance is a multinational general insurance company

headquartered in Seoul. It was founded in January 1952 as Korea Anbo Fire and

Marine Insurance and was renamed Samsung Fire & Marine Insurance in December

1993. Samsung Fire & Marine Insurance offers services including accident insurance,

automobile insurance, casualty insurance, fire insurance, liability insurance, marine

insurance, personal pensions and loans. As of March 2011 it had operations in 10

countries and 6.5 million customers. Samsung Fire & Marine Insurance had a total

premium income of $11.7 billion in 2011 and total assets of $28.81 billion on 31

March 2011. It is the largest provider of general insurance in South Korea. Samsung

Fire has been listed on the Korea Exchange stock market since 1975 (number

000810). Samsung Heavy Industries is a shipbuilding and engineering company

headquartered in Seoul. It was founded in August 1974. Its principal products are bulk

carriers, container vessels, crude oil tankers, cruisers, passenger ferries, material

handling equipment steel and bridge structures. It achieved total revenues of 13,358.6

billion won in 2011 and is the world's second-largest shipbuilder by revenues (after

Hyundai Heavy Industries). Samsung Heavy Industries is listed on the Korea

Exchange stock market (number 010140). Samsung Life Insurance is a multinational

life insurance company headquartered in Seoul. In 1998, Samsung created a U.S. joint

venture with Compaq, called Alpha Processor Inc. (API), to help it enter the high-end

processor market. The venture was also aimed at expanding Samsung's non-memory

chip business by fabricating Alpha processors. At the time, Samsung and Compaq

invested $500 million in Alpha Processor. GE Samsung Lighting was a joint venture

between Samsung and the GE Lighting subsidiary of General Electric. The venture

was established in 1998 and was broken up in 2009. Global Steel Exchange was a

joint venture formed in 2000 between Samsung, the U.S.-based Cargill, the

Switzerland-based Duferco Group, and the Luxembourg-based Tradearbed (now part

of the ArcelorMittal), to handle their online buying and selling of steel. Samtron was a

subsidiary of Samsung until 1999 when it became independent. After that, it

continued to make computer monitors and plasma displays until 2003, Samtron

became Samsung when Samtron was a brand. In 2003 the website redirected to

Samsung. S-LCD Corporation was a joint venture between Samsung Electronics

(50% plus one share) and the Japan-based Sony Corporation (50% minus one share)

which was established in April 2004. On 26 December 2011, Samsung Electronics

announced that it would acquire all of Sony's shares in the venture. It was founded in

March 1957 as Dongbang Life Insurance and became an affiliate of the Samsung

Group in July 1963. Samsung Life's principal activity is the provision of individual

life insurance and annuity products and services. As of December 2011 it had

operations in seven countries, 8.08 million customers and 5,975 employees. Samsung

Life had total sales of 22,717 billion won in 2011 and total assets of 161,072 billion

won at 31 December 2011. It is the largest provider of life insurance in South Korea.

Samsung Air China Life Insurance is a 50:50 joint venture between Samsung Life

Insurance and China National Aviation Holding. It was established in Beijing in July

2005. Siam Samsung Life Insurance: Samsung Life Insurance holds a 37 percent

stake while the Saha Group also has a 37.5 percent stake in the joint venture, with the

remaining 25 percent owned by Thanachart Bank. Samsung Life Insurance is listed on

the Korea Exchange stock market (number 032830). Samsung SDI is listed on the

Korea Exchange stock-exchange (number 006400). On 5 December 2012, the

European Union's antitrust regulator fined Samsung SDI and several other major

companies for fixing prices of cartels lasting nearly a decade. SDI also builds lithium-

ion batteries for electric vehicles such as the BMW i3, and acquired Magna Steyr's

battery plant near Graz in 2015. SDI began using the "21700" cell format in August

2015. Samsung plans to convert its factory in Göd, Hungary to supply 50,000 cars per

year. Samsung SDI also produced CRTs and VFD displays until 2012. Samsung SDI

uses lithium-ion technology for its phone and portable computer batteries. Samsung

SDS is a multinational IT Service company headquartered in Seoul. It was founded in

March 1985. Its principal activity is the providing IT system (ERP, IT Infrastructure,
IT Consulting, IT Outsourcing, Data Center). Samsung SDS is Korea's largest IT

service company. It achieved total revenues of 6,105.9 billion won (US$5.71 billion)

in 2012. Samsung C&T Corporation is listed on the Korea Exchange stock market

(000830). Samsung Electro-Mechanics, established in 1973 as a manufacturer of key

electronic components, is headquartered in Suwon, Gyeonggi-do, South Korea. It is

listed on the Korea Exchange stock market (number 009150). Samsung Advanced

Institute of Technology (SAIT), established in 1987, is headquartered in Suwon and

operates research labs around the world. Ace Digitech is listed on the Korea Exchange

stock market (number 036550). Cheil Industries is listed on the Korea Exchange stock

following the intention of the late Lee Byung-chul, the founder of the Samsung

Group. Shilla Hotels and Resorts is listed on the Korea Exchange stock market

(number 008770). Samsung Everland covers the three main sectors of Environment &

Asset, Food Culture and Resort. The Samsung Medical Center was founded on 9

November 1994, under the philosophy of "contributing to improving the nation's

health through the best medical service, advanced medical research and development

of outstanding medical personnel". The Samsung Medical Center consists of a

hospital and a cancer center, which is the largest in Asia. The hospital is located in an

intelligent building with floor space of more than 200,000 square meters and 20 floors

above ground and 5 floors underground, housing 40 departments, 10 specialist

centers, 120 special clinics and 1,306 beds. The 655-bed Cancer Center has 11 floors

above ground and 8 floors underground, with floor space of over 100,000 square

meters. SMC is a tertiary hospital manned by approximately 7,400 staff including

over 1,200 doctors and 2,300 nurses. Since its foundation in the 1990s, the Samsung

Medical Center has successfully incorporated and developed an advanced model with

the motto of becoming a "patient-centered hospital", a new concept in Korea.

Samsung donates around US$100 million per annum to the Samsung Medical Center.

It incorporates Samsung Seoul Hospital, Kangbuk Samsung Hospital, Samsung

Changwon Hospital, Samsung Cancer Center and Samsung Life Sciences Research

Center. In 2010, the Samsung Medical Center and pharmaceutical multinational Pfizer

agreed to collaborate on research to identify the genomic mechanisms responsible for

clinical outcomes in hepatocellular carcinoma. Samsung Fine Chemicals is listed on

the Korea Exchange stock-exchange (number 004000). Samsung Machine Tools of

America is a national distributor of machines in the United States. Samsung GM

Machine Tools is the head office of China, It is an SMEC Legal incorporated

company. Samsung Securities is listed on the Korea Exchange stock-exchange

(number 016360). S-1 was founded as Korea's first specialized security business in

1997 and has maintained its position at the top of industry with the consistent

willingness to take on challenges. S1 Corporation is listed on the Korea Exchange

stock-exchange (number 012750.KS). State-run Korea Agro-Fisheries Trade Corp. set

up the venture, aT Grain Co., in Chicago, with three other South Korean companies,

Korea Agro-Fisheries owns 55 percent of aT Grain, while Samsung C&T Corp,

Hanjin Transportation Co. and STX Corporation each hold 15 percent. Brooks

Automation Asia Co., Ltd. is a joint venture between Brooks Automation (70%) and

Samsung (30%) which was established in 1999. The venture locally manufactures and

configure vacuum wafer handling platforms and 300mm Front-Opening Unified Pod

(FOUP) load port modules, and designs, manufactures and configures atmospheric

loading systems for flat panel displays. Company POSS – SLPC s.r.o. was founded in

2007 as a subsidiary of Samsung C & T Corporation, Samsung C & T Deutschland

and the company POSCO. Samsung BP Chemicals, based in Ulsan, is a 49:51 joint

venture between Samsung and the UK-based BP, which was established in 1989 to
produce and supply high-value-added chemical products. Its products are used in

rechargeable batteries and liquid crystal displays. Samsung Corning Precision Glass is

a joint venture between Samsung and Corning, which was established in 1973 to

manufacture and market cathode ray tube glass for black and white televisions. The

company's first LCD glass substrate manufacturing facility opened in Gumi, South

Korea, in 1996. Samsung Sumitomo LED Materials is a Korea-based joint venture

between Samsung LED Co., Ltd., an LED maker based in Suwon, Korea-based and

the Japan-based Sumitomo Chemical. The JV will carry out research and

development, manufacturing and sales of sapphire substrates for LEDs. SD Flex Co.,

Ltd. was founded in October 2004 as a joint venture corporation by Samsung and

DuPont, one of the world's largest chemical companies. Sermatech Korea owns 51%

of its stock, while Samsung owns the remaining 49%. The U.S. firm Sermatech

International, for a business specializing in aircraft construction processes such as

special welding and brazing. Siltronic Samsung Wafer Pte. Ltd, the joint venture by

Samsung and wholly owned Wacker Chemie subsidiary Siltronic, was officially

opened in Singapore in June 2008. SMP Ltd. is a joint venture between Samsung Fine

Chemicals and MEMC. In 2011, MEMC Electronic Materials Inc. and an affiliate of

Korean conglomerate Samsung formed a joint venture to build a polysilicon plant.

Stemco is a joint venture established between Samsung Electro-Mechanics and Toray

Industries in 1995. SB LiMotive is a 50:50 joint company of Robert Bosch GmbH

(commonly known as Bosch) and Samsung SDI founded in June 2008. The joint

venture develops and manufactures lithium-ion batteries for use in hybrid-, plug-in

hybrid vehicles and electric vehicles.

HISTORY OF SAMSUNG

The word Samsung means "three stars" in Korean. It became the name associated

with different types of business establishments in South Korea and in various parts of

the world. Internationally, people associate the name with electronics, information

technology and development. In 1969, Samsung Electronics was born. From there, the

company started acquiring and creating different business establishments including a

hospital, paper manufacturing plant, life insurance company, department stores and

many others. The company was destined to become a household name starting in its

mother country and spanning its reach to many other cities internationally. Samsung

Electronics started catering to the international market in the seventies kicking off

with the corporation's acquisition of half of Korea Semiconductor which made it the

leading electronics manufacturer in the country. The success of Samsung as a

technology provider continues to grow through the eighties as Samsung Electronics

was merged with Samsung Semiconductors and Telecommunications. This paved the

way towards a stronger hold on the international market with high-tech products that

will become a staple in every home. This development continued on through the next

decade as Samsung kept on going beyond its boundaries and restructuring its business

plan to accommodate the global scene. Adopting a new form of management proved

to be a wise move for the company as its products made their way on the list of top

must-haves in their various fields. TV-LCD's, picture tubes, Samsung printers and

other high-tech products became popular acquisitions due to their high quality. When

Samsung ventured into the LCD industry in 1993, it became the world's best. The

company's excellent method of quality control is what makes it successful in

providing only the best products to the whole world. It applies a "Line Stop" system

wherein anybody can stop the process of production in the event that substandard
products are discovered. To date, Samsung continues to maintain its status as the

"world's best" technology provider. Its highly qualified workforce is still striving for

excellence in their respective fields making the whole company a huge success in the

making. The secret to the company's continuous success is in the constant

improvement of its management structure and the application of its philosophies: "We

will devote our human resources and technology to create superior products and

services, thereby contributing to a better global society." Making video,camera

phones at a speed to keep up with consumer demand. Samsung has made steady

growth in the mobile industry and are currently second but competitor Nokia is ahead

with more than 100% increase in shares. 2. Thinking Global: Samsung’s Growing

Success Samsung is one of the world’s largest technology providers. It started out as

trading company exporting various products from South Korea to Beijing, China.

Founded by Lee Byung-chul in 1938, Samsung gradually developed into the

multinational corporation that it is today. The word Samsung means “three stars” in

Korean. It became the name associated with different types of business establishments

in South Korea and in various parts of the world. Internationally, people associate the

name with electronics, information technology and development. In 1969, Samsung

Electronics was born. From there, the company started acquiring and creating

different business establishments including a hospital, paper manufacturing plant, life

insurance company, department stores and many others. The company was destined to

become a household name starting in its mother country and spanning its reach to

many other cities internationally.

Samsung Electronics started catering to the international market in the seventies

kicking off with the corporation’s acquisition of half of Korea Semiconductor which

made it the leading electronics manufacturer in the country. The success of Samsung
as a technology provider continues to grow through the eighties as Samsung

Electronics was merged with Samsung Semiconductors and Telecommunications.

This paved the way towards a stronger hold on the international market with high-tech

products that will become a staple in every home. This development continued on

through the next decade as Samsung kept on going beyond its boundaries and

restructuring its business plan to accommodate the global scene. Adopting a new form

of management proved to be a wise move for the company as its products made their

way on the list of top must-haves in their various fields. TV-LCD’s, picture tubes, and

other high-tech products became popular acquisitions due to their high quality. When

Samsung ventured into the LCD industry in 1993, it became the world’s best.The

company’s excellent method of quality control is what makes it successful in

providing only the best products to the whole world. It applies a “Line Stop” system

wherein anybody can stop the process of production in the event that substandard

products are discovered. Even when the whole of Korea experienced a terrible

economic decline in 1997, Samsung was still able to cope with the changes. While it

had its own share of suffering by being forced to restructure the whole corporation

and release ten companies under its umbrella, it was still able to stand up and enjoy

development. To date, Samsung continues to maintain its status as the “world’s best”

technology provider. Its highly qualified workforce is still striving for excellence in

their respective fields making the whole company a huge success in the making. The

secret to the company’s continuous success is in the constant improvement of its

management structure and the application of its philosophies: “We will devote our

human resources and technology to create superior products and services, thereby

contributing to a better global society. ” 3. History- Samsung Group The building of

Samsung Sanghoe in Daegu in the 1938s In 1938, Lee Byung-chull (1910–1987) of

the large landowning family in the Uiryeong county came to the nearby Daegu city

and founded Samsung Sanghoe (???? ), a small trading company with forty

employees located in Su-dong (now Ingyo-dong). It dealt in green-grocery and dried

fish produced in and around the city, and the noodles, Byeolpyo Guksu produced

itself. The company prospered and Lee moved its head office to Seoul in 1947. When

the Korean War broke out, however, he was forced to leave Seoul and started a sugar

refinery in Busan as a name of Cheil Jedang. It was the first South Korean sugar

manufacturing facility. After the war, in 1954, Lee founded Cheil Mojik and built the

plant in Chimsan-dong, Daegu. It was the largest woolen mill ever in the country and

the company took on an aspect of a major company. Samsung’s diversified into many

areas and Lee sought to establish Samsung as an industry leader in a wide range of

enterprises. The company started moving into businesses such as insurance, securities,

and retail. South Korean President Park Chung-hee’s regime during the 1960s and

1970s would prove a boon for Samsung. Park placed great importance on

industrialization, and focused his economic development strategy on a handful of

large domestic conglomerates, protecting them from competition and assisting them

financially. Samsung was one of these companies. Park banned several foreign

companies from selling consumer electronics in South Korea in order to protect

Samsung from foreign competition and nurture an electronics manufacturing sector

that was in its infancy. In the late 1960s, Samsung Group began the electronics

industry. It formed several electronics-related divisions, such as Samsung Electronics

Devices Co. , Samsung Electro-Mechanics Co. , Samsung Corning Co. , and Samsung

Semiconductor & Telecommunications Co. , and made the facility in Suwon. Its first

product was a black-and-white television set. In 1980, the company acquired Hanguk

Jeonja Tongsin in Gumi, and started to build telecommunication devices. Its early
products were switchboards. The facility were developed into the telephone and fax

manufacturing systems and became the centre of Samsung’s mobile phone

manufacturing. They have produced over 800 million mobile phones to date. The

company grouped them together under Samsung Electronics Co. , Ltd. in the 1980s.

View of the Samsung logo inside the Time Warner Center in New York City. In the

late 1980s and early 1990s, Samsung Electronics invested heavily in research and

development, investments that were pivotal in pushing the company to the forefront

of the global electronics industry. “By the 1980s Samsung was manufacturing,

shipping, and selling a wide range of appliances and electronic products throughout

the world”“. In 1982, it built a television assembly plant in Portugal; in 1984, it built a

$25 million plant in New York; in 1985, it built a $25 million plant in Tokyo; and in

1987, it built another $25 million facility in England. The 1990s saw Samsung rise as

an international corporation. Not only did it acquire a number of businesses abroad,

but also began leading the way in certain electronic components. Samsung’s

construction branch was awarded a contract to build one of the two Petronas Towers

in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates

(founded by Callum Cuirtis), which is the tallest structure ever constructed. 12] In

1993 and in order to change the strategy from the imitating cost-leader to the role of a

differentiator, Lee Kun-hee, Lee Byung-chull’s successor, sold off ten of Samsung

Group’s subsidiaries, downsized the company, and merged other operations to

concentrate on three industries: electronics, engineering, and chemicals. In 1996, the

Samsung Group reacquired the Sungkyunkwan University foundation. Compared to

other major Korean companies, Samsung survived the Asian financial crisis of 1997–

98 relatively unharmed. However, Samsung Motor, a $5 billion venture was sold to

Renault at a significant loss. Additionally, Samsung manufactured a range of aircraft

from 1980 to 1990s. The company was founded in 1999 as Korea Aerospace

Industries (KAI), the result of merger between then three domestic major Aerospace

divisions of Samsung Aerospace, Daewoo Heavy Industries and Hyundai Space and

Aircraft Company (HYSA). Korea Aerospace Industries (KAI) – largest shareholders

as of 2009 (Korea Development Bank 30. 53%, Samsung Techwin 20. 54%, Doosan

(formerly known as Daewoo Heavy Industries) 20. 4%, Hyundai Motor 20. 54%).

Samsung Group headquarters at Samsung Town, Seoul. Most importantly, Samsung

Electronics (SEC) has since come to dominate the group and the worldwide

semiconductor business, even surpassing worldwide leader Intel in investments for

the 2005 fiscal year. Samsung’s brand strength has greatly improved in the last few

years. Samsung became the largest producer of memory chips in the world in 1992,

and is the world’s second-largest chipmaker after Intel (see Worldwide Top 20

Semiconductor Market Share Ranking Year by Year). From 1999 to 2002, Samsung

conspired with Hynix Semiconductor, Infineon Technologies, Elpida Memory

(Hitachi and NEC) and Micron Technology to fix the prices of DRAM chips sold to

American computer makers. In 2005 Samsung agreed to plead guilty and to pay a

$300 million fine, the second-largest criminal antitrust fine in the US history. In 1995,

it built its first liquid-crystal display screen. Ten years later, Samsung grew to be the

world’s largest manufacturer of liquid-crystal display panels. Sony, which had not

invested in large-size TFT-LCDs, contacted Samsung to cooperate. In 2006, S-LCD

was established as a joint venture between Samsung and Sony in order to provide a

stable supply of LCD panels for both manufacturers. S-LCD is owned by Samsung

(50% plus 1 share) and Sony (50% minus 1 share) and operates its factories and

facilities in Tangjung, South Korea. Considered a strong competitor by its rivals,

Samsung Electronics expanded production dramatically to become the world’s largest

manufacturer of DRAM chips, flash memory, optical storage drives and it aims to

double sales and become the top manufacturer of 20 products globally by 2010.

It is now the world’s leading manufacturer of liquid crystal displays. Samsung

Electronics, which saw record profits and revenue in 2004 and 2005, overtook Sony

as one of the world’s most popular consumer electronics brands, and is now ranked

#19 in the world overall. Behind Nokia, Samsung is the world’s second largest by

volume producer of cell phones with a leading market share in the North America and

Western Europe. On December 29, 2009, Samsung sued Mike Breen and the Korea

Times, for $1 million, claiming criminal defamation over a satirical column published

on Christmas Day 2009. Korea Times issued a correction on December 26, 2009 and

January 29, 2010 stating “that Korean and overseas readers might be sufficiently

misled” and that “the claims made in the column were entirely false and without

foundation. “Samsung dropped the charges following the correction and Michael

Breen’s apology. In May 2010 the EU antitrust watchdog levied a 145. 73 million

euro fine against Samsung for illegally fixing prices with 8 other memory chip

makers. Samsung – The History When we talk about businesses that have humble

beginning, then the history of Samsung can serve as the perfect example. It all started

on March 1, 1938 when Byung-Chull Lee, the founding chairman of Samsung

initiated a business in Korea with a capital of only 30,000 won. The primary products

of what was then Samsung were dried Korean fish, fruits, and vegetables traded from

Beijing and Manchuria. For the etymology of Samsung, it has the root words “three

stars. ” The business or Mr. Lee expanded and it had acquired confectionery

machines, increased its sales operations and as we have known at present it has

become a global corporation that is now offering various brands, products, around the

world. The Samsung Electronics that mainly produces Samsung mobile phones and
other mobile phone deals today is similar to the Samsung Company that existed in the

1970s. In the 1970s, the strategic foundations of Samsung became more established

when it engaged itself to various investments in petrochemical industries and in 1974

it continued to expand its business as Samsung Shipbuilding Company. In 2006 alone,

it has achieved the following accomplishments for mobile phones production and

innovation: o Developed the world’s first ever OneDRAMTM o 10 million sales

record breaker in the United States for mobile phones o Introduced the 10M pixel for

camera mobile phones o Revealed the fastest HSDPA phone and system in the world

o Commenced and completed the manufacturing plant in India for mobile phones The

present line up of Samsung mobile phones which comes with excellent mobile phone

deals include the most beautiful technology mobiles namely: SGH-E950, SGH-E840,

and SGH-J600. he latest luxurious mobile phones introduced in Singapore are known

for its stylish designs, innovative and excellent features, that all comes with high-tech

multimedia features. The striking designs and uncompromising features, functions,

and performances of Samsung mobile phones will continue to rule the mobile phone

industry around the world. 5. Brief History of the Samsung Company Samsung is a

Korean company that has risen to prominence in many fields over the years. The size

and the scope of the company is almost unimaginable, as they are one of the largest

and most diverse companies in the world. While the company is mostly known for

their technology division [cell phones, radios, MP3 players, computer screens, and the

like] they have many other divisions as well. The company has expanded from a

humble storefront launched in the late 1930s to the largest company in Korea and the

second largest company in the world. In addition to the electronics division, which is

the most profitable and successful one in the world, the company also has forayed into

finance, chemicals, retail, and straight-up entertainment – all with great degrees of
uccess. The company employs many of South Korea’s finest employees, including

many with PHD level education. This is not surprising, seeing as the company’s

assets total somewhere around $300 billion. The company has some of the most loyal

employees around and many work every day – that means no holiday time off or

weekends — both because they want to and it is expected. The company was once

even larger than it is now, but the government, concerned about the power that the

company amassed, required the company to drop some of its sub-divisions.

Because the company is so large and powerful, they have been accused of

bankrupting some other companies – or worse, making the market so that other

companies don’t stand a chance at the start. They are also very much so the leader in

electronic components that other companies use to build products – and as such, can

control the market value and inflate prices at will. This is why the government

stepped in and attempted to somewhat limit the huge conglomerate’s power and

scope. However, it is important to note that the company is responsible for at least 1/5

of the country’s exports. As a result, they are in a position of power because of the

money they supply to the government. Additionally, their vast number of employees

are essential to the country’s economy. The company has been around for quite some

time, and although there has been some controversy about their strength and power in

South Korea, there is no denying that they benefit the economy greatly by providing

jobs, exporting their services, and otherwise doing things that smaller companies

would not be equipped to do. Samsung is a powerhouse of a company, with many

people worldwide using their products, particularly the electronics such as cell phones

and MP3 players. It’s not surprising that the company continues to thrive in the ways

it does. 6. Samsung History Samsung Group Timeline and History Samsung’s

beginnings (1938 ~ 1969) On March 1, 1938, founding chairman Byung-Chull Lee

started a business in Taegu, Korea with 30,000 won. At first, Mr. Lee’s little business

was primarily in trade export, selling dried Korean fish, vegetables, and fruit to

Manchuria and Beijing. But in just over a decade, SAMSUNG – meaning literally

“three stars” in Korean – would have its own flour mills and confectionery machines,

its own manufacturing and sales operations, and ultimately become the roots of the

modern global corporation that still bears the same name today. 1969 Dec

SAMSUNG-Sanyo Electronics established (Renamed SAMSUNG Electro-Mechanics

in March 1975 and merged with SAMSUNG Electronics in March 1977) Jan

SAMSUNG Electronics Manufacturing incorporated (Renamed SAMSUNG

Electronics in February 1984) 968 Nov Koryo General Hospital opened (Renamed

Kangbuk SAMSUNG Hospital in 1995) 1966 May Joong-Ang Development

established (Known today as SAMSUNG Everland) 1965 Oct Saehan Paper

Manufacturing acquired (Renamed Chonju Paper Manufacturing in August 1968 and

no longer affiliated with SAMSUNG) Sep SAMSUNG launched Joong-Ang Ilbo

newspaper (No longer affiliated with SAMSUNG) Apr SAMSUNG Foundation of

Culture established 1963 Jul DongBang Life Insurance acquired (Renamed

SAMSUNG Life Insurance in July 1989 DongHwa Department Store acquired

(Known today as Shinsegae Department Store and no longer affiliated with

SAMSUNG) 1958 Feb Ankuk Fire & Marine Insurance acquired (Renamed

SAMSUNG Fire & Marine Insurance in October1993) 1954 Sep Cheil Industries Inc.

founded 1953 Aug Cheil Sugar Manufacturing Co. founded (Now an independent

company and no longer affiliated with SAMSUNG) 1951 Jan SAMSUNG Moolsan

established (Known today as SAMSUNG Corporation) 1938 Mar SAMSUNG

founded in Taegu, Korea SAMSUNG’s industrial era